Committee votes down bill to extend film tax credit program

Published: Wednesday, June 11, 2014 at 10:02 a.m.

Last Modified: Wednesday, June 11, 2014 at 10:02 a.m.

State Rep. Susi Hamilton Wednesday said the film community was "double-crossed" by House Speaker Thom Tillis, whose staff she claims actively worked to defeat a budget amendment to keep film incentive talks alive in the General Assembly.

"Rep. (Ted) Davis was given the green light to run the bill in Finance and the best we could tell during the committee, the speaker's staff and other leaders from the Republican Party went around and whipped votes against the amendment," Hamilton said after the Wednesday morning failed vote in the House Finance Committee to extend film tax credits.

In a rare interview with the StarNews, Tillis retorted that Hamilton's comments were likely "born out of emotions" but that this "sort of behavior" makes her the "single greatest threat" to a compromise on film incentives in the state House.

Republican Tillis, who is mounting a heated bid for the U.S. Senate against Democratic incumbent Kay Hagan, has been relatively quiet in recent weeks on film incentives, a top priority for Wilmington area officials, with his spokeswoman in previous requests for interviews on the topic punting to other leading Republicans.

But after Hamilton's "double-crossed" comment, Tillis, a Republican from Mecklenburg County, called the StarNews to defend his record on film incentives, saying he worked in the 2009-2010 session against an effort by the Democratic leadership to kill film incentives.

"I actively worked to prevent that from happening," Tillis said. "I have a longer history of trying to work on this than Rep. Hamilton has in the legislature. I think her comments and activity are the single greatest threat to progress."

Following Wednesday's events, Bill Vassar, executive vice president of EUE/Screen Gems Studios, released a statement expressing doubt in the Wilmington studio's future unless legislation continuing the state's film incentive program was passed.

"The House leadership is destroying a valuable North Carolina industry. We are re-examining our commitment to North Carolina," Vassar stated. "Unless new legislation is generated and approved in the coming hours, it's clear we are not welcome to invest our company's money, time and talent here any longer."‘Still optimistic'

Hamilton, a Wilmington Democrat, said that was a distortion of the facts, as that vote several years ago to beef the incentives package was bipartisan.

For his part, Davis said Speaker Tillis did not work against his amendment.

"I want to clear one thing up. The Speaker's office did not work against me," he said. "In fact ever since I've been trying to do this the Speaker's office has been very supportive of what I am trying to do. So that is an incorrect statement that I do not agree with."

Davis said he is "still optimistic" for other opportunities to pursue the film tax credits.

Tillis said his "record is clear on this issue" and he is "trying to do the best I can to get members on board" for a film incentives package that could earn the support of the conservative House body.

"If Rep. Hamilton wants to be a part of the solution she needs to stop being a part of the problem," Tillis said.

‘This is a fight'

Meanwhile, Hamilton said that after the StarNews contacted Tillis' office about her "double-crossed" comment, that she was visited by a staff member of Tillis' at her Jones Street office in Raleigh who was unhappy with her.

"This is a fight," Hamilton said, adding later, "It sounds to me like the Speaker is concerned about the votes in Wilmington in his U.S. Senate race."

"Do I seem emotional?" she continued. "Any more than usual? My comments were born out of fact. And the facts are: Ted Davis ran an amendment in Finance today, and we all witnessed top Republican leadership and a staff member from Tillis' office work the committee to secure votes against the amendment.

"I would welcome the opportunity for him to make me a liar. All he has to do is lead his House and get film included in the budget."

Wilmington Mayor Bill Saffo said it was his understanding, too, that Speaker Tillis' office had actively worked against the amendment. "I guess he'll have to explain that to voters in eastern North Carolina, my part of the state."

The mayor said he was very disappointed in the vote Wednesday morning.

"They torpedoed it and they killed it and I don't know why," Saffo said. "It was my understanding that Rep. Davis was told they (Republican leaders) would support him in this amendment and when they got into the committee room the powers that be did everything they could to kill it."

Hamilton said that she and Davis went into the meeting this morning with the understanding they had the votes to support the amendment.

"They blatantly worked against it during committee," she said.

Behind the scenes

While the fiery Hamilton has been outspoken leader on the film incentives debate, the more private Davis has worked diligently behind the scenes to try to persuade reluctant members of his own party to come on board.

Davis had sponsored an amendment to a budget bill that would have reduced the tax credit from 25 percent to 22.5 percent, and lowered the per-project payout cap from $20 million to $15 million.

In his statement, Screen Gems' Vassar detailed that a "competitive incentive" was one that is above 20 percent with "reasonable caps."

Davis' measure also would have extended the sunset date of the incentives from Jan. 1, 2015 to Jan. 1, 2017, and called for an independent study on the economic impact of the invectives.

The amendment failed 20-16.

‘Epic disappointment'

The film incentives debate, however, is not dead.

The Senate has sent to the House a proposal that would turn the film tax credits into a grant program – though industry supporters said that proposal doesn't go far enough to retain the state's "tier-one" film status. If that bill is heard by the House, it could be amended there and sent to a House-Senate conference committee to work out the differences. There also could still be a film incentives amendment heard on the House floor this week, and Tillis suggested he is working with his members to see if a compromise can be reached.

But what's certain is that Wednesday's vote was seen as a blow to the industry.

N.C. Production Alliance spokeswoman Katy Feinberg called the vote an "epic disappointment."

"Granted, nothing is final until sine die however this seems like a huge flip-flop for many Republican legislators," she said.

Meanwhile, the conservative group Americans for Prosperity-North Carolina applauded the vote.

"If the state is going to spend money, then it should spend it on core government functions, such as education and transportation," said Donald Bryson, the group's deputy state director.

As Wednesday's turn of events sank in, a wounded film industry plotted its next step.

"After 18 years of privately investing, building and nurturing the film industry in North Carolina, my company is shocked and stunned that events in the House Finance Committee this morning left the North Carolina film industry seriously, perhaps fatally weakened," said Screen Gems' Vassar in his statement. "Today, we urge the North Carolina Legislature and Speaker Tillis to rethink this morning's actions, and we welcome the opportunity to collaborate with you to keep 4,000 North Carolina film jobs alive."

One of those jobs belongs to Vanessa Neimeyer, an extras casting agent with NCasting currently working on CBS' summer series "Under the Dome."

Since uncertainty surrounding the film incentive arose, Neimeyer hoped she would be able to remain in the state. But after Wednesday's vote, she admitted she wasn't sure anymore.

"I am devastated and will be forced to leave the city I love and the people I love working with," Neimeyer said. "I've started applying to jobs in other states."